Risk Management Overview

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Questions and Answers

Match the following definitions with their corresponding terms:

Risk reassessment = Periodic review of risks to identify new risks and evaluate responses Risk management = Process of identifying and mitigating risks Risk register = Document that lists identified risks and their status Risk appetite = Amount of risk an organization is willing to accept

Match the risk management concepts to their descriptions:

Inherent risk = Risk existing in the absence of controls Residual risk = Risk that remains after controls are applied Risk transfer = Shifting the burden of risk to another party Risk matrix = Tool used to assess probability and impact of risks

Match the following risk strategies with their definitions:

Risk avoidance = Eliminating risk entirely Risk acceptance = Acknowledging risks without taking action Risk sharing = Distributing risk across multiple parties Risk reduction = Implementing measures to minimize impact of risks

Match the following assessment types to their characteristics:

Qualitative risk assessment = Uses subjective judgment to assess risks Quantitative risk assessment = Utilizes numerical data to evaluate risk Risk assessment = Process of identifying and analyzing potential risks Risk strategy = Plan for addressing identified risks Signup and view all the answers

Match the following incorrect statements about risk management to their correct concepts:

Ignoring risks = Approaching risks without acknowledging them Eliminating all risks = Unrealistic goal in risk management Focusing only on financial risks = Limiting the scope of risk management Denial of risks = Refusal to acknowledge existing risks Signup and view all the answers

Match the risk management concepts with their correct definitions:

Risk Tolerance = The level of risk an organisation is unwilling to take. Risk Mitigation = Eliminating all risks. Risk Avoidance = Involves accepting the risk. Risk Workshop = To eliminate all risks. Signup and view all the answers

Match the following terms with their appropriate descriptions:

Bowtie method = Visual representation of risk factors and controls Risk owner = Individual responsible for managing a specific risk Risk management plan = Document outlining risk management strategies Risk matrix = Structured tool to evaluate risk significance Signup and view all the answers

Match the terms to their descriptions in risk management:

Risk Event = An occurrence that has no effect on project objectives. Risk Indicator = A measure that eliminates risks. Risk Communication = Sharing information only about financial risks. Risk Escalation = The process of eliminating risks. Signup and view all the answers

Match the following incorrect definitions with their corresponding terms:

Risk owner = Someone who creates risks Risk register = Document that lists only financial risks Risk transfer = Transferring risk to an internal department Risk appetite = Desire to avoid all risks Signup and view all the answers

Match the following tactics to their definitions:

Ignorance = Avoiding knowledge of existing risks Denial = Refusing to accept the existence of risks Acceptance = Recognizing and acknowledging risks Reduction = Taking action to decrease risk exposure Signup and view all the answers

Match the following concepts with their related processes:

Contingency Plan = A plan to eliminate all risks. Risk Response Planning = Planning to create risks. Risk Aggregation = Combining risks to ignore them. Internal Audit = To ignore risks. Signup and view all the answers

Match the descriptions to the correct terms in risk management:

Risk Culture = The values and beliefs about ignoring risks. Risk Identification = To create risks. Risk Reduction = Involves eliminating the risk. Risk Impact = The effect of risk exposure. Signup and view all the answers

Match the following risk management activities with their objectives:

Risk Mitigation = To ignore risks. Risk Avoidance = Involves reducing the risk. Risk Workshop = To create risks. Risk Communication = The process of eliminating risks. Signup and view all the answers

Match the following terms with their meanings:

Contingency Plan = A plan to create risks. Risk Escalation = The process of creating risks. Risk Indicator = A tool that ignores risk exposure. Risk Tolerance = The desire to avoid all risks. Signup and view all the answers

Match the ISO standards with their years:

ISO 35100 = 2008 ISO 39100 = 2012 ISO 51100 = 2009 ISO 60100 = 2011 Signup and view all the answers

Match the risk definitions with their correct terms:

Risk Mitigation = Creating new risks. Risk Culture = The understanding of eliminating all risks. Risk Event = An event that is always ignored. Risk Communication = The process of ignoring risk information. Signup and view all the answers

Match the risk management terms with their definitions:

Risk tolerance level = Degree of variability in outcomes that an organisation is willing to withstand. Risk avoidance strategy = Changing the project plan to eliminate the risk. Risk acceptance = No action is taken to address a risk because its impact is deemed acceptable. Risk sharing = Distributing the risk among multiple parties, such as through partnerships. Signup and view all the answers

Match the risk concepts with their descriptions:

Risk appetite statement = Formal declaration of the amount and type of risk an organisation is willing to pursue. Risk monitoring and control = Tracking identified risks and evaluating the effectiveness of the risk process. Risk exploitation = Strategy to ensure that opportunities are realised by taking proactive steps. Risk prioritisation = Ranking risks based on their probability and impact to determine which to address first. Signup and view all the answers

Match the risk terms with their functions:

Risk diversification = Spreading risk across different areas to reduce impact. Risk threshold = Level of risk exposure above which risks are addressed. Risk impact/consequence = Effect of a risk event on project or organisational objectives. Risk communication plan = Outlines how risk information will be communicated to stakeholders. Signup and view all the answers

Match the ISO standard with its year:

ISO 31000 = 2009 AS/NZS 31000 = 2009 ISO 9001 = 2015 ISO 14001 = 2015 Signup and view all the answers

Match the risk strategies with their explanations:

Risk sharing = Involves distributing the risk among multiple parties. Risk acceptance = Involves acknowledging a risk without taking action. Risk avoidance = Involves changing plans to eliminate a risk. Risk exploitation = Involves proactively pursuing opportunities. Signup and view all the answers

Match the risk management activities with their purposes:

Risk monitoring = Tracking identified risks. Risk evaluation = Assessing the impact and effectiveness of the risk process. Risk identification = Recognizing new risks. Risk control = Implementing strategies to manage risks. Signup and view all the answers

Match the risk terms with their corresponding actions:

Risk appetite statement = Documents the level of risk an organization is willing to accept. Risk diversification = Mitigates potential loss by spreading risk. Risk threshold = Sets a boundary for acceptable risk exposure. Risk impact/consequence = Assesses the potential effect of identified risks. Signup and view all the answers

Match the risk definitions with their significance:

Risk acceptance = A strategy to take no action on certain risks. Risk appetite statement = Indicates the level of risk that is acceptable. Risk tolerance level = Defines variation in acceptable outcomes. Risk communication plan = Ensures stakeholders are informed about risks. Signup and view all the answers

Match the risk concepts with their definitions:

Risk threshold = The level of risk exposure that is always acceptable. Risk appetite statement = A declaration of the risks an organisation will not take. Risk tolerance level = The degree of risk that is always unacceptable. Risk acceptance = Accepting risks to eliminate them. Signup and view all the answers

Match the risk management strategies with their descriptions:

Risk avoidance strategy = Avoiding risks to eliminate them. Risk sharing = Sharing risks to create new ones. Risk monitoring and control = Tracking risks to ignore them. Risk exploitation = Exploiting risks to create new ones. Signup and view all the answers

Match the risk management actions with their objectives:

Risk prioritisation = Ranking risks to eliminate them. Risk reassessment = Reassessing risks to eliminate them. Risk diversification = Eliminating risk by spreading it. Risk communication plan = A plan to communicate only financial risks. Signup and view all the answers

Match the following terms with their meanings:

Risk monitoring = Monitoring risks to create new ones. Risk consequence = The impact of a risk that is always negative. Risk exploitation = Exploiting risks to ignore them. Risk sharing = Sharing risks to eliminate them. Signup and view all the answers

Match the risk concepts with their focus area:

Risk mitigation = The process of identifying and reducing risks. Risk transference = Shifting the impact of risk to another party. Risk assessment = Evaluating risks and their potential impacts. Risk acceptance = Recognizing and allowing for certain risks. Signup and view all the answers

Match the following risk management strategies with their utility:

Risk retention = Retaining risks to manage cost. Risk reduction = Implementing measures to lower risk impact. Risk avoidance = Choosing not to engage in activities that carry risk. Risk sharing = Distributing risk among multiple parties. Signup and view all the answers

Match the concepts of risks with their categories:

Operational risk = Risks arising from day-to-day operations. Financial risk = Risks related to financial loss. Strategic risk = Risks from changes in the market environment. Compliance risk = Risks of failing to comply with laws and regulations. Signup and view all the answers

Match the types of risks with their characteristics:

Inherent risk = The level of risk before controls are applied. Residual risk = The level of risk remaining after controls. Contingent risk = Risk dependent on specific events. Systemic risk = Risk affecting the entire system or market. Signup and view all the answers

Match the following concepts in risk management with their definitions:

Risk Assessment = The process of identifying potential hazards and analysing what could happen if a hazard occurs. Risk Register = A tool used to document risks, their severity, and action steps to manage them. Risk Appetite = The amount and type of risk an organisation is willing to take to meet its objectives. Risk Matrix = A tool to define risk levels by considering probability and impact. Signup and view all the answers

Match the following risk management terms with their explanations:

Inherent Risk = Risk before controls are applied. Residual Risk = Risk that remains after controls have been implemented. Risk Transfer = Shifting the risk to a third party, such as through insurance. Risk Owner = An individual responsible for managing a specific risk. Signup and view all the answers

Match the different types of risk assessment with their characteristics:

Qualitative Risk Assessment = Uses subjective judgement. Quantitative Risk Assessment = Uses numerical data. Risk Mitigation = Taking steps to reduce the adverse effects of potential risks. Risk Culture = The values, beliefs, and understanding about risk shared within an organisation. Signup and view all the answers

Match the following risk management tools and practices with their purposes:

Risk Management Plan = To outline how risk management will be performed on a project. Risk Workshop = A session where stakeholders identify and assess risks and develop strategies. Risk Indicator = A metric used to measure risk exposure or control effectiveness. Risk Communication = Sharing information about risk between decision-makers and stakeholders. Signup and view all the answers

Match the following risk management concepts with their distinctions:

Risk Avoidance = Eliminates the risk. Risk Reduction = Lowers the likelihood or impact of the risk. Internal Audit = Provides independent assurance on risk management processes. Bowtie Method = Visualises pathways from causes to consequences of a risk event. Signup and view all the answers

Match these specific terms in risk management with their definitions:

Risk Tolerance = The specific maximum risk an organisation is willing to take. Risk Severity = The impact level of a risk event. Risk Status = Current assessment and management of identified risks. Risk Strategy = Long-term approach to managing risks. Signup and view all the answers

Match the risk management processes with their respective actions:

Risk Identification = The first step in the risk management process. Risk Analysis = Assessment of identified risks to understand their implications. Risk Control = Implementing measures to mitigate risks. Risk Review = Periodic evaluation of risk management effectiveness. Signup and view all the answers

Match the purpose of the following risk management elements:

Risk Assessment = Identify potential hazards and analyze impacts. Risk Communication = Facilitate information exchange among stakeholders. Risk Reporting = Document and inform about risk status. Risk Monitoring = Continuously evaluate risk management effectiveness. Signup and view all the answers

Match the following risk management terms with their definitions:

Risk identification = To determine which risks might affect the project and document their characteristics. Risk acceptance = A strategy where no action is taken because the risk's impact is deemed acceptable. Risk escalation = Transferring a risk to a higher authority when it cannot be managed at the current level. Risk appetite statement = A formal declaration of the amount and type of risk an organisation is willing to pursue or retain. Signup and view all the answers

Match the following concepts with their descriptions:

Risk event = An occurrence that has a negative or positive effect on project objectives. Contingency plan = A predefined action plan implemented if a specific risk event occurs. Risk probability = The likelihood that a risk event will occur. Risk impact = The effect or consequence of a risk event on project objectives. Signup and view all the answers

Match the following risk strategies with their meanings:

Risk avoidance strategy = Changing the project plan to eliminate the risk or protect objectives from its impact. Risk exploitation = Ensuring opportunities are realised by taking proactive steps. Risk sharing = Distributing the risk among multiple parties, such as through partnerships or insurance. Risk diversification = Spreading risk across different areas to reduce the impact of any single risk. Signup and view all the answers

Match the following risk management practices with their purposes:

Risk prioritisation = Ranking risks based on their probability and impact to determine which to address first. Risk monitoring and control = Tracking identified risks, monitoring residual risks, and evaluating risk process effectiveness. Risk communication plan = Outlines how risk information will be communicated to stakeholders. Risk threshold = The level of risk exposure above which risks are addressed. Signup and view all the answers

Match the following terms related to risk evaluation to their definitions:

Risk aggregation = Combining multiple risks to understand their collective impact. Risk tolerance level = The degree of variability in outcomes that an organisation is willing to withstand. Risk monitoring = The process of tracking identified risks and their impacts. Risk response planning = Developing options and actions to enhance opportunities and reduce threats. Signup and view all the answers

Match the following risk management terms with the corresponding descriptions:

Risk communication = The process of sharing risk-related information with stakeholders. Residual risk = The risk that remains after risk response efforts have been taken. Threat = A potential negative occurrence that may affect project objectives. Opportunity = A potential positive occurrence that may enhance project objectives. Signup and view all the answers

Match the following terms with their related actions:

Risk identification = Documenting the characteristics of potential risks. Risk analysis = Evaluating the likelihood and impact of identified risks. Risk reporting = Communicating risk findings to project stakeholders. Risk evaluation = Assessing the significance of risks for prioritization. Signup and view all the answers

Match the following risk management concepts with their key components:

Stakeholder engagement = Involving stakeholders in the risk management process. Risk review = Regularly revisiting and updating the risk management plan. Impact assessment = Determining the effects of risks on project objectives. Risk strategy selection = Choosing the appropriate response strategies for identified risks. Signup and view all the answers

Flashcards

Risk reassessment

Periodically reviewing risks to identify new ones, re-evaluate existing ones, and check how well risk responses are working.

Risk management

The process of planning to deal with potential threats.